Whenever a new technology is discovered or developed then people need to know and understand it before they can use it comfortably. Today’s world is using cutting edge technology and many people do not understand the mechanism of many tools and equipment. We use jargons like digital currency and blockchains interchangeably without even understanding that these two are actually two different things.
Let us understand these two terms so that you will be able to use them appropriately when the time comes. First the names of the concepts. As the name suggests, ‘block-chain’ is the chain of blocks; the blocks here mean the pieces of information. Initially, there was only one currently being used online and people used the two terms without making any distinction. But slowly the term blockchain started to be used without any monetary value or token attached to it. It is essentially a block of information and is connected to more blocks of data. It is the ledger that keeps every transaction recorded, and is open to everybody in the network and kept secure with encryption protocols in place. Many big companies are trying to use this technology for various administrative purposes.
This is another name of the digital currency or virtual currency that is connected to block chains. In the beginning, there was only one currency and it was called Bitcoin, which was the token given in lieu of each block of information.With new currencies, it is actually a little different and the tokens and currency may have different names. For example, in the technology Ethereum, the token is called Ether. If you are familiar with portmanteau or hybrid names then cryptocurrency is the amalgamation of two words, cryptogenic and currency.
Why are these becoming popular
Blockchains and digital currencies are generating widespread curiosity and many large corporations are trying to incorporate the two aspects of their companies. The important aspect here is the control and security of both these intangible aspects. Cryptocurrency is basically the value attached to a piece of information and the information is the building blocks or the blockchain. Some studies have shown that it is possible to use the block chains in other aspects of work, and the data can be secured with encryption. But as the governments and people alike are scared of data breach and the value attached to the leaks in terms of monetary value, there are still many apprehensions about the actual implementation.
Some huge countries like China and India keep cautioning people to be careful while venturing into digital currency. They do not comprehend the full extent of its reach and how it is taking over the internet financial circuit. People will also appreciate the significance and then slowly start accepting these currencies.